Kenyan Parliamentary Committee visit to De La Rue proves useful
March 29, 2012
The Public Accounts Committee (PAC) led by Chairman Boni Khalwale has termed the committee’s visit to the De La Rue factory in Ruaraka as useful. Dr. Khalwale said the visit was a fact-finding mission by the committee, in relation to the planned joint venture between the Kenyan Government and De La Rue Currency and Security Print Kenya.
“We are happy with the co-operation by De La Rue in this matter and the information we have obtained from the company will help the committee to make a rational judgment,” said Dr. Khalwale.
De La Rue Currency and Security Print Kenya’s Head of Operation Steve Craig said the visit has made it possible to correct some of the misinformation currently going round.
“There has been a lot of misreporting in the media about our operations in Kenya and more specifically, about the joint venture with the Government of Kenya. I’m glad that members of Public Account Committee paid us a visit, toured our facilities and they’ve seen for themselves what we are capable of doing here,” said Mr Craig .
The Kenyan government wants to invest £5 million (Sh650 million) to purchase a 40 percent stake in a new company to be known as De La Rue EPZ Kenya Limited. According to Investment Secretary Esther Koimett, the new company will be created by hiving down all the operating assets belonging to De La Rue Currency and Security Print Kenya that has been operating in the country since 1992.
The transfer of assets from De La Rue Currency and Security Print Kenya into De La Rue EPZ Kenya Limited will be initiated under the Transfer of Business Act Cap 500 and will involve the government buying 40 percent of the new company. That transfer of assets is a condition precedent to the Treasury Permanent Secretary signing the share sale and purchase agreement.
Ms Koimett said: “At £5 million, the Kenya Government is getting the best deal. You have seen what kind of investment De La Rue has put in place and this investment is sure to work in the government’s favour. Through this deal the government will be getting the best of both worlds; that is a new company that is already operating with qualified staff and with no liabilities.” This view is supported by Mr Craig: “We were hesitant to sell such a large stake to the Kenyan Government as we would have wished to have retained a larger stake and originally only wanted to sell 25%, however after lengthy negotiations we have agreed to sell 40 percent of the company.”
As the world’s largest integrated commercial security printer and papermaker, De La Rue is a trusted partner of governments, central banks, issuing authorities and commercial organisations around the world.
The De La Rue Group is involved in the design and production of over 150 national currencies and a wide range of security documents including passports, driving licences, authentication labels and tax stamps. In addition, the Group manufactures sophisticated, high speed, cash sorting equipment.
De La Rue also offers a range of specialist services and software solutions including government identity schemes, product authentication systems and cash management processing solutions.
De La Rue employs approximately 4,000 people worldwide and is listed on the London Stock Exchange.
For further information, please visit www.delarue.com
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Rob Hutchison, Group Director of Marketing Communications